INPEA Webinar Series
Provided in partnership with INPEA, DAST Consulting and CISCO
Finding the Money: Grant Resources, Financing, and Certified Refurbished Gear
May 19, 3-4 p.m. CT / 4-5 p.m. ET
E-Rate
Program
Update
May 2014
ConnectED is driving E-Rate reform
© 2013-2014 Cisco and/or its affiliates. All rights reserved.
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3
E-Rate Trends:
Growth in Telecom/Internet demand…
…vanishing Equipment/Maintenance funding
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Primary Elements of Reform
 Amount of funding (i.e. size of the cap)
 Making existing funding process more equitable for smaller/rural/non-poverty school
systems
 Eligible Services List
o How should the FCC focus funds on high capacity broadband deployment?
 Deliver minimum 100mbps WAN/Internet TO every school
 Provide ubiquitous wireless broadband IN every school to teacher/student
devices
o Should the FCC phase down/out support for traditional voice services?
 Timeframe?
 Priorities?
 Lower Discounts?
 Administration of the program
o Streamline Process
o Cost Effectiveness
© 2013-2014 Cisco and/or its affiliates. All rights reserved.
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E-Rate Modernization –
What Could It Mean For Smaller/Rural/Independent K-12?
No one knows with certainty the impact of new rules, but…
FCC Order expected prior to start of 2014-15 school year;
new E-Rate program rules effective 7/1/2015.
• “Additional” $2 billion may help bridge gap in 2014 or held back to jumpstart 2015/2016
• More focused Eligible Services most relevant to digital learning:
o Renewed availability of funding for internal connections across full discount matrix
o Restricted/phased out funding for voice services and ancillary telecom services and equipment
• Sensitivity to needs of small/rural school systems
• Simpler filing process, more liberal program regulations designed to ease burden on applicants
© 2013-2014 Cisco and/or its affiliates. All rights reserved.
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Grant Strategy with Cisco
Jen Messinger
National Commercial Grant Manager
‘GRANTS’ MODEL
Generate Conversations
Relevance of Technology
Awareness of

Work with the Cisco Grants Strategy Team (GST) to explore grants based on
existing programmatic needs

Conversations of

GST assist in breaking down grant solicitation, offers programmatic ideas & ensures
proposal is aligned with scope of grant

Who needs to be involved in your project and at the table? What partners need to be
included? Establish your “grants” team.
the relevance of technology to your project and how
technology assist in serving more students/teachers and may offer
increased services
Project/Programs
Notify Key Stakeholders
Transition to Writing the
Application
Submission &
 You’ve identified the grant you want to pursue, confirmed project aligns
to grant priorities, have included technology for a more innovative project
and have gathered key stakeholders. It is time to start writing!

Application is submitted but grants team continues to meet and discuss the plan for
implementation of grant program.
Implementation
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Customer Resources

Monthly customer webinars


http://www.publicsectorevent.com/calendar.cfm
https://grantsofficeevents.webex.com/

Funding reports
 Grant Calendar
 Direct customer support

(prequalification to project implementation)

Customer training
 Cisco Capital- Blended opportunity to Finance Match Contribution for
Grants
© 2013-2014 Cisco and/or its affiliates. All rights reserved.
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Jen Messinger
Cisco Grants Strategy Team
919.927.1400
E-mail:
jennifer.messinger@cisco.com
Cisco Capital Overview
Indiana Private Education
May 19, 2014
Jim Pantazi
Financial Solutions Manager
Cisco Capital
(636) 735-2561
Cisco Capital
•
A captive finance source
–
•
Customers get to leverage Cisco financial strength
–
–
–
•
Over $40B in cash.
Cisco Capital is not subject to market swings like banks and third party’s.
We use the strength of Cisco’s balance sheet to offer financing solutions.
Flexible
–
–
–
–
–
•
Wholly owned subsidiary of Cisco Systems, Inc.
No interim rent
Like for like returns
Ability to early terminate and upgrade
Can include non-Cisco assets
Different objectives than a third party lessor
Strategy
–
Enable Cisco customers to economically acquire, deploy and protect their technology
investment with a flexible financial framework.
Equipment & Financial Life Cycle Management
Acquire
Disposal
Deploy
Upgrade/
Refresh
Maintain
Benefits of Financing
for IT Decision Makers
Renew technology to match business requirements
Ability to satisfy your needs now
Remove budgetary constraints
Flexible payment terms e.g. deferred
Maximize available budget
Additional projects can be considered
Protect against technology obsolescence
“Refresh” solution with minimal business impact
Usage without the risks of ownership
Protection from depreciating IT investments
Financing provides IT with flexibility and peace of mind
Benefits of Financing
for Finance Decision Makers
Effective cost / benefit management
Avoids significant IT investment spikes
Budget stability / planning
Costs fixed for contract duration
Conserve budgets and preservation of cash
Saves / enables alternative use of budget or liquid assets
Key financial performance indicators improved
Such as return on assets
Potential tax advantages
Finance revenue costs can reduce tax burden
Standard Finance Products
FMV and $1 Buyout
OPEX (FMV)
• Purchase option is at fair market value
• Lowest payment – may qualify as an operating
lease
• Convenient for tech refresh
• Available for terms of 2-5 years
CAPEX ($1 BO)
• Purchase option is for $1
• Low payment, locked in purchase price
• Passes depreciation benefit to customer
• Available for terms of 2-5 years

FREE Financing on UC Projects
FY14 Customer Offers – Cisco Capital
Expiration
Offer
Description
3 Month Deferral
Financing
Turn a large upfront investment into predictable
payments while also offering 3 months free from
payments and interest.
July 26, 2014
Cisco Collaboration
Breakaway PLUS
Financing
Migrate your legacy collaboration solutions with
rates as low as 0%. Cisco Collaboration
Breakaway Financing only applies to transactions
where the customer has qualified under Cisco’s
Collaboration Breakaway Program.
July 26, 2014
Brad Blough
Remarketing Manager
May 2014
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• In existence since 2001
• Cisco’s authorized division of refurbished equipment
• Reside under Cisco Capital organization
• New and end of sale Cisco products across all
technologies – 2,000+ products
• Supply available through Cisco supply chain and
lease portfolio
• Sold through authorized Cisco resellers and
distributors or to direct Cisco customers
© 2013 Cisco and/or its affiliates. All rights reserved.
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Product
Sources
Remanufacturing
Process
Routes to
Market
• Stock Rotations
• Demo Returns
• RMA and Trade-Ins
• Manufacturing Overruns
• Convention / Olympic Returns
• End of Sale Inventory
• Cancelled Orders
• Lab Equipment
• Internal
• Lease Returns
Direct Customers
* 85% of CCRE on GPL *
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INSPECT
UPGRADE
TEST
REPAIR
CLEAN AND
RECONDITION
PACKAGE
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Inventory
Condition
Latest generation products
2,400+ models across all technologies
All technologies
End-of-Sale products available
New
• Remanufactured and fully tested to Cisco specs Proprietary
product hardware and firmware upgrades (ECOs) applied
• Valid IOS software license included
Warranty
90 day to limited lifetime
Same
Support
24 x 7 hardware and software available through Cisco
Technical Assistance Center
Same
Pricing
• Cisco GPL
• Discount starting at 65% off GPL
• Applicable discounts and promotions
• No hidden costs
• Full
• Dynamic, limited inventory
• Lead times vary
• Short lead times, if product in stock
Cisco authorized partners and distributors
Same
Availability
Available Through
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• Products sourced from outside authorized Cisco channels are not
guaranteed by Cisco.
• These products may have invalid
warranties, and definitely have
invalid software licenses, no
support entitlement, and/or
incorrect product configurations.
• Cisco is not able to offer support,
software updates, hardware
replacement or SmartNET
coverage on gray market products
• Presents a huge business risk to
the customer
© 2013 Cisco and/or its affiliates. All rights reserved.
Tell your customers to verify!
www.cisco.com/go/warranty/
www.cisco.com/go/partnerlocator/
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•
Yes, 0% financing available through Cisco Capital
through July
•
Help your Customers:
 Lower total cost of ownership
 Reduce financial risk
 Realize tax savings
 Simplify operating budgets
 Make the most of their capital budgets
•
Work with Remarketing Manager or Cisco Capital
Channel Account Manager for assistance
© 2013 Cisco and/or its affiliates. All rights reserved.
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Cisco Certified Refurbished Equipment
Just like NEW in quality, warranty and support.
Order today: www.cisco.com/go/refurbished
|
Questions: refurbquestions@cisco.com
THANK YOU!
Recording and slides will be posted on INPEA website. Have additional questions?
Contact:
AMY HERSHMAN – ahershma@cisco.com